Friend of Edsen, Is your company currently having difficulties with the use of spreadsheets with limited functions? In the digital age where all the company's business processes are connected to each other, the use of spreadsheets seems to be starting to be tiring due to error-prone and ineffective.
In this article, we try to review the 5 weaknesses of business processes that still use spreadsheets.
1. Risk of Human Error
Errors in inputting data made by very large employees occur when companies use spreadsheets. This is of course very risky and can have a chain effect ranging from the obstruction of financial statements making up to the delay in making strategic business decisions by the management and directors. Therefore, company data input using spreadsheets is considered to be ineffective due to the human error factor committed by employees within the company.
2. Business processes are carried out manually
The use of spreadsheets in a company makes business processes done manually like you have to input the company's manual data into a spreadsheet, not to mention other divisions in the company that have to do the same thing. Assets that are owned by the company certainly are not small and you can not input data assets at a time. This process will also be more difficult if the company's assets frequently move locations so information about these assets must always be updated according to the latest conditions.
3. Without Connectivity
One weakness of spreadsheets is the lack of connectivity. When one division in the company input data then this is not connected to the data in another division. This of course will hamper the company's business processes, especially in terms of making the company's annual financial statements.
4. Inaccurate Data
Another disadvantage of using this spreadsheet is that the data inputted is sometimes inaccurate. Take for example, if the company has entered complete asset information but does not record changes in asset information, there is a risk of inaccurate asset information. Especially if the previous asset information is not updated. This will result in an audit when the end of the year arrives.
5. Takes a Long Time for Data Reconciliation
At the end of the year, the company will close its books and audit activities. The audit process is comparing the previous data with the results during the audit. Reconciling between divisions within the company using spreadsheets certainly takes a long time because they have to compare one by one the existing data.
With the weaknesses of spreadsheets, many companies have switched to using a connected planning platform that has a financial, strategic and operational solution for the company. These benefits include better control over company data, increased collaboration and productivity, reducing errors, speeding up business processes, simplifying data management, and the ability to make business more proactive and agile.
Companies that link their plans can work through the planning process faster, plan and correct courses more often, and achieve higher visibility throughout their business.
Connected planning technologies such as Anaplan can help achieve transformation by first linking the planning process in the finance department before finally connecting plans throughout the company.
Companies that have already implemented Anaplan can continue to analyze business performance, making real-time adjustments to forecasts and plans in the midst of fluctuating market conditions such as the current pandemic corona. In addition, the team can directly communicate any impact of the change to the entire business.
Edsen Consulting as a consulting company has an Anaplan planning platform as one of the services that can give your company the strength and flexibility to plan your business area, enabling collaborative decision making to drive increased business performance throughout the company.